Analyses

Are Some of the US Citizens Really Using Their Coronavirus Stimulus Checks to Buy Crypto? – BTC, ETH, LTC Price Analysis, 20 Apr, 2020

Institutional investors continue to pour money into cryptocurrencies, according to a Q1 2020 investment report released by Grayscale last week. Grayscale is the largest digital currency investment fund that has $1.68 billion in assets under management.

Their latest report says that the company was able to grow its investment base by $503.7 million in Q1 2020, nearly doubling the previous quarterly high of $254.8 million in 3Q 2019. A total of $388.9 million was the quarterly inflow to Grayscale Bitcoin Trust and $110.0 million – to Grayscale Ethereum Trust. Institutional investors (mainly hedge funds) accounted for the lion's share (88%) of the raised money.

Not only corporate investors view Bitcoin and the rest of the major cryptocurrencies as good financial assets, but many of the average people as well. For instance, on April 17th, Coinbase CEO Brian Armstrong published a chart in his Twitter account, implying that some of the US citizens are using their coronavirus stimulus checks to buy cryptocurrencies:

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Source: Twitter

On the first day of the current week, the cryptocurrencies are struggling to find a clear direction. At the time of writing, according to Coin360.com, one Bitcoin costs €6,611.13 (+0.39%), one Ethereum – €169.02 (+0.52%), and one Litecoin – €9.44 (-0.83%):

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Daily crypto market performance. Source: Coin360.com

Now let's have a look at the price charts of the major cryptocurrencies against the euro.

BTC/EUR

In the 1-week time frame (1W), BTC/EUR is at the 50.0% Fibonacci retracement level and in the middle of the range of the previous local low:

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We don't expect BTC/EUR to exit the range of the previous local low within the current week. That's why we consider the 38.2% Fibonacci retracement level (€5,923.45) as a solid support level (S1) and the 61.8% Fibonacci retracement level (€7,365.44) as a solid resistance level (R1).

ETH/EUR

On the 4h-hour chart (4H), last Thursday the price of Ethereum bounced off the lower line of the «ascending channel»:

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We think that throughout the current week, ETH/EUR will continue to fluctuate within the upward channel. 

The closest support level is the 38.2% Fibonacci retracement (S1) or €157.31. The closest resistance levels are the 50.0% Fibonacci retracement (R1) and the 61.8% Fibonacci retracement (R2) – €178.39 and €199.47, respectively.

LTC/EUR

In the 1-week time frame, the price chart of Litecoin formed a «Spinning Top» candlestick pattern last week, after the «Shooting Star» in the week before:

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Although theoretically, the «Shooting Star» candlestick is considered to be a trend reversal pattern, the «Spinning Top» candlestick doesn't confirm the bearish sentiment, because it has a small bullish body that is above the body of the «Shooting Star». Therefore, it is highly probable that the bulls will try to push the price further up.

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The analysis is purely informational and does not constitute investment, financial, trading, or any other sort of advice and you should not treat any of Bitvalex's content as such. Bitvalex does not recommend that any cryptocurrency should be bought, sold, or held by you. You are solely responsible to conduct your own due diligence and consult an advisor before making any investment decisions.


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